Utilize Webgility Desktop to expedite the refund process of both partial and full refunds on certain shopping carts, including Shopify, Magento, Square, and WooCommerce.
Before You Begin
Keep the following in mind before starting the refund process:
- The refund must be initiated in your shopping cart first — Webgility cannot process a refund that hasn't been created at the store level
- The original order must already be posted to QuickBooks before the refund can be posted
Initiate the Refund in Your Shopping Cart
Before doing anything in Webgility, you must first process the refund directly in your shopping cart, where your payment processor is connected.
Example: If you use Shopify, initiate the refund from your Shopify admin panel first.
Once the refund is processed in the shopping cart, proceed to Webgility.
Enable the Refund Column in Webgility
Before you can see refunds in Webgility, make sure the Refund column is visible in your order dashboard.
1. Log in to Webgility Desktop.
2. On the Dashboard, go to the New Orders tab (or the Posted Orders tab) and click three dots on the bottom left corner the Display Settings.
Note: Step 2 above is required if your Refunds column is not visible in the Webgility order dashboard.
3. In the Display Settings dialog, check the Refund checkbox and click Save.
After saving, click Check for New Orders. Any orders with a refund will now show an arrow icon (↩) in the Refund column. If an order has already been posted to QuickBooks and then refunded, the refund arrow will appear on the order under the Posted Orders tab.
Configure Refund Settings in Webgility
You can configure default refund behavior so Webgility automatically handles refunds the way you want to post in QuickBooks.
Nevigate to Connections > Accounting / POS / ERP > Sync Settings > Orders > Under Posting Rules Enable Related Transactions, check the boxes for:
- Credit Memo — enables the Credit Memo tab and settings
- Automated Refund Posting — enables auto-posting rules
Credit Memo: Setup
Select the appropriate option for how you want to post the Credit Memo in QuickBooks, then click Save to apply your settings.
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Choose your preferred posting option for Credit Memos (e.g., A/R Account, Transaction Class, Sales Rep, Credit Memo Template, or Terms).
- Click Save to apply the settings.
Note: The examples in this guide use a Shopify refund. If you use a different shopping cart (Magento, Square, WooCommerce, etc), your settings options may look slightly different.
Automated Refund Posting
When Automated Refund Posting is enabled, Webgility posts refunds to QuickBooks automatically — you don't need to do it manually each time.
Order already posted to QuickBooks: Webgility posts the refund automatically at the time of order posting.
Order not yet posted to QuickBooks: Webgility will post the refund as soon as the order is posted.
Using Webgility Scheduler: This setting is required — the Scheduler uses it to auto-post refunds along with scheduled order syncs.
Configure the Automated Refund Posting settings to match your business needs, then click Save.
Post the Refund in QuickBooks
You can only post a refund after the original order has been posted in QuickBooks, follow the steps below:
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Go to the Posted Orders tab and double-click the order you want to refund.
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In the order details view, click the Credit Memo tab.
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Click Post Refund.
Note: Order not posted yet? If you haven't posted the original order to QuickBooks first, Webgility will prompt you to do so before you can post the refund
If you have already posted the order, and now posting the refund for that order, you will be prompted to choose one of the three options as a preference for recording the refund in QuickBooks:
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Void Transaction: Completely removes the original transaction from QuickBooks. Best for same-day errors or cancellations.
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Credit Memo: Posts an open credit memo to Accounts Receivable (A/R). The customer can apply it to a future purchase..
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Refunds Check: Post a check that is marked as paid back to the customer out of the deposit-to account with which you had originally collected the revenue.
If you don't have a preference, we recommend the Create Refunds Check, as it is the most complete transaction for a refund and is the most appropriate in terms of accounting best practices.
Re-adjust Inventory (Optional)
After selecting a refund method, you can choose whether returned items go back into inventory in QuickBooks or not.
Note: Refund transactions created by Webgility will by default return all items you are posting to inventory. If you do not want to return an item to inventory, click the Re-Adjust Quantity checkbox.
In the below example, SKU #!43 is not being returned to inventory because it was either damaged or lost or cannot be restocked for some other reason. The second SKU is being returned to inventory and can be sold to another customer.
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If you want to view the transaction in QuickBooks, click View Refund.
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If you want to un-post the refund transaction from QuickBooks, click Undo Sync.
Automated Refund Posting:
To automate the posting of refunds to QuickBooks, configure the Webgility Scheduler to process refund transactions automatically. Review the following help article for step-by-step guidance on configuring automatic refund posting through the Scheduler Scheduler Settings Overview
NOTE: If you are using Webgility Scheduler to automate order posting, you can check Post refund to automatically post the refund after it is downloaded.
You can either set Webgility to always void the posted order in Quickbooks for a refund order or create a credit memo or refund check.
If you chose to create a credit memo or a refund check, you will need to specify your QuickBooks Bank account to adjust the refund amount.
Posting refund as a line item
Use this option when a refund is an amount adjustment only (e.g., a partial discount) and the customer has not returned any physical items. Instead of creating a separate refund transaction, the adjustment gets recorded as a line item within the original order.
Navigate to Connections > Sales Channels > Settings
This will open the Store Settings window.
Here, under Download Options, check the box Get refunds and record in and select the item in the dropdown where you want to record the adjustment amount in QuickBooks.
For posting the refund amount as a line item, we recommend using a Non-Inventory Item from QuickBooks.
